Cambridge IGCSE Business Studies
Questions and Answers | Latest Update |
2024/2025 | Rated A+
What is meant by a ‘need’?
✔✔ A need is something essential for survival, such as food, water, or shelter.
What is a ‘want’?
✔✔ A want is something that is not essential for survival but is desired to improve the quality of
life, like a smartphone or holiday.
What is ‘opportunity cost’?
✔✔ Opportunity cost is the benefit or value of the next best alternative that is given up when
making a choice.
What is meant by ‘specialization’?
✔✔ Specialization is when individuals, businesses, or economies focus on producing a limited
range of goods or services to increase efficiency.
1
,What is ‘added value’?
✔✔ Added value is the difference between the cost of producing a product and the price at
which it is sold.
What is a ‘sole trader’?
✔✔ A sole trader is a business owned and operated by one person who has unlimited liability.
What is meant by a ‘partnership’?
✔✔ A partnership is a business owned by two or more people who share profits and
responsibility for its operation.
What is a ‘private limited company (Ltd)’?
✔✔ A private limited company is a business owned by shareholders, but its shares are not
available to the general public.
What is a ‘public limited company (PLC)’?
✔✔ A public limited company is a large business whose shares are traded on the stock exchange
and can be bought by the public.
2
,What is ‘unlimited liability’?
✔✔ Unlimited liability means that the business owners are personally responsible for all the
debts of the business.
What is meant by ‘limited liability’?
✔✔ Limited liability means that the shareholders of a company are only responsible for the
business's debts up to the amount they invested.
What is a ‘franchise’?
✔✔ A franchise is a business model where a franchisee is allowed to operate a business using
the branding, systems, and support of an established franchisor in exchange for fees.
What is ‘business objective’?
✔✔ A business objective is a specific goal that a business aims to achieve, such as increasing
profits, expanding market share, or improving customer satisfaction.
What is meant by ‘profit’?
✔✔ Profit is the financial gain that results when revenue exceeds costs.
3
, What is a ‘business plan’?
✔✔ A business plan is a document that outlines a business's objectives, strategies, target market,
and financial forecasts.
What is ‘revenue’?
✔✔ Revenue is the total amount of money a business earns from selling its products or services
before any expenses are deducted.
What is ‘market share’?
✔✔ Market share refers to the percentage of total sales in a market that is owned by a particular
business.
What is ‘break-even’?
✔✔ Break-even is the point at which a business's total revenue equals its total costs, resulting in
no profit or loss.
What is ‘cash flow’?
✔✔ Cash flow is the movement of money into and out of a business, including income and
expenses, over a period of time.
4
Questions and Answers | Latest Update |
2024/2025 | Rated A+
What is meant by a ‘need’?
✔✔ A need is something essential for survival, such as food, water, or shelter.
What is a ‘want’?
✔✔ A want is something that is not essential for survival but is desired to improve the quality of
life, like a smartphone or holiday.
What is ‘opportunity cost’?
✔✔ Opportunity cost is the benefit or value of the next best alternative that is given up when
making a choice.
What is meant by ‘specialization’?
✔✔ Specialization is when individuals, businesses, or economies focus on producing a limited
range of goods or services to increase efficiency.
1
,What is ‘added value’?
✔✔ Added value is the difference between the cost of producing a product and the price at
which it is sold.
What is a ‘sole trader’?
✔✔ A sole trader is a business owned and operated by one person who has unlimited liability.
What is meant by a ‘partnership’?
✔✔ A partnership is a business owned by two or more people who share profits and
responsibility for its operation.
What is a ‘private limited company (Ltd)’?
✔✔ A private limited company is a business owned by shareholders, but its shares are not
available to the general public.
What is a ‘public limited company (PLC)’?
✔✔ A public limited company is a large business whose shares are traded on the stock exchange
and can be bought by the public.
2
,What is ‘unlimited liability’?
✔✔ Unlimited liability means that the business owners are personally responsible for all the
debts of the business.
What is meant by ‘limited liability’?
✔✔ Limited liability means that the shareholders of a company are only responsible for the
business's debts up to the amount they invested.
What is a ‘franchise’?
✔✔ A franchise is a business model where a franchisee is allowed to operate a business using
the branding, systems, and support of an established franchisor in exchange for fees.
What is ‘business objective’?
✔✔ A business objective is a specific goal that a business aims to achieve, such as increasing
profits, expanding market share, or improving customer satisfaction.
What is meant by ‘profit’?
✔✔ Profit is the financial gain that results when revenue exceeds costs.
3
, What is a ‘business plan’?
✔✔ A business plan is a document that outlines a business's objectives, strategies, target market,
and financial forecasts.
What is ‘revenue’?
✔✔ Revenue is the total amount of money a business earns from selling its products or services
before any expenses are deducted.
What is ‘market share’?
✔✔ Market share refers to the percentage of total sales in a market that is owned by a particular
business.
What is ‘break-even’?
✔✔ Break-even is the point at which a business's total revenue equals its total costs, resulting in
no profit or loss.
What is ‘cash flow’?
✔✔ Cash flow is the movement of money into and out of a business, including income and
expenses, over a period of time.
4
